German firm sees long-term prospects in RI

JAKARTA (JP): German steel company Ferrostaal AG reported on Tuesday an 80 percent decrease in its revenue in Indonesia last year to DM50 million (US$28 million) in 1998, due to the sluggish domestic market.

"We have to make up our loss in Indonesia with our business in other countries," Chairman of Forrestaal Klaus von Menges told a press conference on Tuesday at the German technology fair TECHNOGERMA '99.

However, Menges said that Ferrostaal still sees long-term business prospects in Indonesia. He predicted Indonesia's economy would recover in two to three years' time.

Ferrostaal has for a long time worked in cooperation with the Indonesian steel and shipbuilding industry.

Ferrostaal was involved in state-owned PT Krakatau Steel's turnkey project to build a sponge iron plant between 1990 and 1994.

Other Ferrostaal projects in the 90s included a railway rehabilitation undertaking in West Sumatra for state railway company Perumka, numerous container vessel transport facilities for state shipbuilder PT PAL and a few projects with private Indonesian companies.

Ferrostaal also has interests in a number of joint-venture companies: PT Samudra Ferro Engineering, focusing on management consultancy, PT Prinpak Perdana, involved in after sales service and maintenance for manufacturing industries, power generation company PT MAN Pindad, and PT Kahardjaja, working in the printing industry.

Ferrostaal is one of the 194 exhibitors at the German trade and technology fair called TECHNOGERMA Jakarta '99, being held from March 1 to March 7 at the Jakarta Convention Center.

The exhibition is organized by the German Federal Ministry of Economics, which is financing the event, as well as the Exhibition and Trade Fair Committee of the German Trade and Industrial Association, with the support of the German-Indonesian Chamber of Industry and Commerce in Jakarta. (02)